Pound Rallying Strongly into the New York Close, Hinting Bremain Ahead

Risk assets are rallying in tandem with the British pound, pointing to a win for the Remain camp for now.

The British pound has rallied strongly across the board against virtually all of its counterparts into the close of trading in New York. The move could have been triggered by some private polls conducted by major market players with the resources for that. Independent exit polls are allowed under British legislation as long as the results are not publicized before the close of the polling stations.

Currently the GBP/USD is trading around 1.4880, while the EUR/GBP is changing hands around 0.7645. Both rates are closer to the daily highs, indicating that some market participants might be taking on risk before the announcement of the results of the YouGov exit polls which proved to be quite reliable in the case of the Scottish referendum last year.

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Looking across other asset classes, gold has continued its stumble and is currently trading lower by $10 from its session highs, which is also consistent with a Remain lead. Global stock markets have closed the day briskly into the green with major European indices rallying between 1 and 2 per cent. The U.S. stock market followed suit with the Dow Jones Industrial Average closing above the 18,000 mark for the first time since April.

Finance Magnates reporters have spoken with several brokerages which have all expressed confidence in their systems and the reliability of their platforms. That said, with the main news event still away, the most challenging part of the U.K. European Union referendum trading session is still ahead of us.

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